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The problem with having a

The problem with having a gold standard is unless your money supply grows in relation to the growth of your economy, you will have deflation, which will eventually suck away at your growth, leading to no growth.

A huge benefit of allowing banks to fractionally reserve has been that banks can effectively set/meet demand of money. From 1948 to 2008, this has allowed investment to flourish, by allowing the creation of capital necessary to invest in something before that capital has been naturally created.

Now of course, Austrian economists have problems with this. But the issue really comes into play when the banks make BAD bets. For example, let us say in 1985, a Bank takes my 100 dollar deposit, creates 1,000, and invests in a technology-startup. When their bet pays off, the fact that they "created" money is irrelevant...their investment has resulted in a growth in the economy several, several times the 1,000 created, and they can easily fulfill the 100 dollar deposit.

When you have the bad bet, that is where the pain comes. If the economy does not "grow in" to the money you created, then you have a problem.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Fractional reserve is not a benefit

You must define your terms on what a gold standard is.

Fractional reserve banking as it exists today where all deposits whether they are time deposits (cds or timed savings accouts) and demand deposits ( checking accounts) are treated the same and are used for the reserve of the fractional reserve are fraudulent in the demand deposit side.

The definition of demand deposit is that you can withdraw the entire deposit on demand in full with no time restrictions or amount restrictions.
If this is not the definition the bank uses then they are committing fraud.

Banks purposely obfuscate this definition in order to put all deposits in the fractional reserve.

Deflation is not a bad thing, what it means is that the dollars you hold are gaining in purchasing power not decreasing in purchasing power as the current system works with constant monetary inflation and then the resulting price inflation (decreasing purchasing power).

This country had its greatest economic growth during the late 19th century when there was consistent low levels of deflation.

A gold coin or silver coin or both standard is what is needed. This means that you can convert fiat money into gold or silver on demand in any amount with no restrictions at all.

You then can hold that honest money outside a bank or depository and not have it stolen by the state, as FDR did in 1934. Or again when the state replaced silver coins with base metal coins in 1965.

The other advantage of holding it outside a bank is the criminal banksters cannot use this wealth to create more debt based fiat money. This hurts the criminals because they cannot make money by creating money.

The practice of fractional reserve banking is to increase the money supply (inflation) there by leading eventually to price inflation which is a hidden tax on everyone who holds dollars. That is the criminal act in addition to the fraud mentioned above.

Dr. RON PAUL Has Been Trying To Introduce Sound Money,

For his entire political career.


Thanks to the sole urging of the Downsize DC Army, Rep. Ron Paul has introduced a bill that would bring the above benefits. This bill, called the "Free Competition in Currency Act" (HR 1098), has three parts . . .

The Honest Money portion would repeal the legal tender law, which gives the Federal Reserve a monopoly over the money supply.
The Competitive Currency section would repeal the words of Title 18 Section 489 of the U.S. Code, which gives the United States government a monopoly over the creation of coins for use as currency.
The Tax-Free Gold component of the bill would prohibit federal and state taxes, such as capital gains, on precious metal coins and bullion.


Btw I have been buying gold

Btw I have been buying gold and silver for a while and was hoping to use it sometime in the near future.